Conservative universal credit plan condemned by charities as ‘fast track to poverty’
The proposal would cut payments by a third for claimants who have not paid enough national insurance, restricting spending via a dedicated debit card.
A Conservative Party proposal to cut universal credit payments by a third for claimants who have not paid enough national insurance has been condemned by one charity as “a fast track to increased poverty.”
Under the plan, people receiving what is described as a “subsistence allowance” would have the reduced payment loaded onto a dedicated debit card designed to prevent them from buying alcohol or tobacco. The approach is modelled on a similar system previously used in Australia, which was scrapped after trials found limited evidence that it changed recipients’ behaviour.
Charities have pushed back on the proposal, arguing that many families receiving universal credit are already dealing with the effects of previous austerity measures and the rising cost of living, and that further restricting their payments risks deepening hardship rather than encouraging employment.
Debate over welfare policy
The proposal is likely to become part of a broader debate over welfare policy, with supporters framing the changes as an incentive to push claimants into work and critics warning of the potential impact on vulnerable households.
It remains unclear when or whether the proposal would be brought forward as formal policy, or how it might be implemented in practice.
Sources
- Tories target universal credit claimants in plan condemned as ‘fast track to poverty’ — The Guardian — World
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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